Trump Proposes 100% Tariff on Chips and Semiconductors Amid Economic Transition
WASHINGTON — On Wednesday, President Trump revealed a plan to impose a 100% tariff on "all chips and semiconductors," claiming it would facilitate a structured economic transition despite anticipated significant repercussions for US companies.
During an event in the Oval Office alongside Apple CEO Tim Cook—who arrived to unveil a $600 billion investment initiative in the United States—Trump stated, “We’ll be putting a tariff, approximately 100%, on chips and semiconductors.”
He emphasized that companies transitioning their manufacturing operations to the US would be exempt, suggesting that Taiwan Semiconductor Manufacturing Company (TSMC), currently establishing extensive production facilities in Arizona, might benefit from this exemption.
“If you’re constructing in the United States, there’s no tariff, even if you’re not yet producing large volumes or creating significant job numbers,” Trump remarked. “If you’re building, there will be no tariff.”
He reiterated, “So, we are imposing a 100% tariff on all chips and semiconductors entering the United States. However, if you’ve committed to building or are actively constructing, as numerous companies are, there will be no tariff.”
Tim Cook declined to comment on the proposed tariff when prompted by journalists.
The President characterized these tariffs as a measure to hold companies accountable that fail to follow through on commitments to establish manufacturing facilities in the US.
“If you claim you’re building and then do not follow through, we will go back, tally it up, and impose charges at a later date. You will have to pay, and that is a certainty,” Trump stated.
He expressed optimism, claiming, “I believe chip companies are all returning home. We began with Intel, which, frankly, was pushed aside and relocated to other countries, particularly Taiwan. However, I believe many of these firms are swiftly coming back.”
In addition to substantial reciprocal tariffs, Trump has previously enacted 50% tariffs on imported steel, aluminum, and copper, as well as a 25% tariff on foreign-built cars, in an effort to bolster domestic industries.
The President did not provide a launch date for the upcoming chip tariffs, but he hinted at proposing similar duties for pharmaceuticals and lumber in the near future.
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